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HomeMy WebLinkAboutMinutes City Council - 05/28/2002I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Regular Council Meeting of the City of Corpus Christi of May 28, 2002, which were approved by the City Council on June 11, 2002. WITNESSETH MY HAND AND SEAL, this 1 lth day of June 2002. Armando Chapa City Secretary SEAL PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Bill Kelly Council Members: Brent Chesney Javier D. Colmenero Henry Garrett* Rex A. Kinnison John Longoria Jesse Noyola Mark Scott MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting May 28, 2002 - 1:00 p.m. City Staff: City Manager David R. Garcia Deputy City Manager George Noe City Secretary Armando Chapa First Assistant City Attorney Jay Reining Recording Secretary Rachelle Parry Mayor Neal called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Dr. Dan Morris, South Church of Christ, and the Pledge of Allegiance to the United States flag was led by Council Member Colmenero. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Neal called for approval of the minutes of the regular Council meeting of May 21, 2002. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * * * * Mayor Neal referred to Item 2, a public hearing on the FY 2002-03 budget adopted by the Crime Control and Prevention District board of directors. Council Member Kelly made a motion to open the public hearing, seconded by Council Member Kinnison, and passed (Garrett absent). Ms. Linda Bridges, Chairperson of the Crime Control District (CCD) board, gave a brief history of the district. She stated that on November 4, 1997, Corpus Christi citizens voted to establish the CCD that was dedicated to crime reduction programs and the adoption of a sales tax rate of 1/8th of 1%. For the past five years, the CCD board has managed the budget and programs. In keeping with their responsibilities, the members held a public hearing on April 18, 2002, and adopted the FY 2002-03 budget on May 8th. She said the budget is designed to prepare for a phase- out of the district if citizens fail to renew the 1/8th cent sales tax rate on November 5, 2002. If that occurs, the sales tax collection will end on April 1, 2003. Ms. Bridges said the $4.6 million CCD budget is built on the reality that there is a limit to what can be funded with the 1/8th cent sales tax. The main features are primarily the 50 police officers (which includes their salaries, benefits and equipment) and the continuation of the Juvenile Assessment Center (JAC). She said the last 10 officers that were promised in the original CCD plan are now in the police academy and will be graduating in October 2002. In addition, the JAC secured a Title V grant which adds case managers, who have full loads and waiting lists. The location of the juvenile court next to the assessment center has been a very productive endeavor. She said Judge Minutes - Regular Council Meeting May 28, 2002 - Page 2 Deanie King has been able to refer young people and parents to the JAC. Ms. Bridges also noted that the CCD budget includes expenses for the November 2002 election. In addition, an independent support group, which will promote the reauthorization of the CCD, has been formed. Responding to Mr. Kinnison, Ms. Bridges said the budget has an eight-month calculation and an additional four months if the district is renewed that takes it through the fiscal year. She said then the board will look at the next five-year projection. Mr. Kinnison asked if the preliminary discussions have been basically limited to just the 50 officers and the JAC and not a number of other items. Ms. Bridges said the problem is that the expenses associated with the police officers continue to grow every year because of increased salaries and benefits. She said the board has talked about ways to minimize those expenses by moving experienced officers out of the CCD budget and into the city's budget so the district can continue at a certain level. Mr. Kinnison specifically asked about three budget items: legal advisor, pawn shop detail, and support personnel. Ms. Bridges said while the board felt those items could not continue to be funded by the CCD budget, there was strong support for the legal advisor position. In reply to Council Member Longoria, Police Cmdr. Bryan Smith, CCD Coordinator, said the pawn shop detail provides a very valuable service to the Police Department by correlating all the information from Nueces County pawn shops, 90% of which are automated. He said a majority of their time is now spent taking the 10% of the non -automated tickets and manually entering the information to compare it with the department's computerized records. He said they have been responsible for recovering over $1 million in stolen property. Cmdr. Smith said he is not aware of any money in the Police Department's proposed budget to continue the pawn shop detail (although the automated process will continue). Mr. Longoria said he thought that service was important. Mr. Longoria also asked about street lighting. Cmdr. Smith said the CCD was able to upgrade the lighting fairly inexpensively in many areas by improving the bulbs rather than installing new apparatuses. He added that there is an involved process with CPL to improve the lighting. In some instances, citizens do not believe that increased lighting will benefit them. Responding to other questions from Mr. Longoria, Cmdr. Smith said they have down scaled the Citizen Advisory Councils (CACs) from large groups to smaller neighborhood -based groups, which improves attendance. He also discussed the juvenile deputy city marshals. Mr. Longoria asked for additional information about the purpose and benefits of the legal advisor. Council Member Colmenero also asked about the street lighting issue, CACs, and graffiti prevention, which Cmdr. Smith discussed. Mayor Neal called for public comment. Mr. Abel Alonzo, 1701 Thames, commended Ms. Bridges and the CCD board for keeping the promise of 50 police officers. He pledged his support for the renewal of the district. Council Member Chesney made a motion to close the public hearing, seconded by Mr. Colmenero, and passed (Garrett absent). * * * * * * * * * * * * * Minutes - Regular Council Meeting May 28, 2002 - Page 3 Mayor Neal referred to Item 3, the presentation of the proposed FY 2002-03 operating budget. City Manager Garcia gave the Manager's Message, stating that the proposed budget incorporates the priorities of the City Council as expressed in the city's mission statement and the Council's updated goals and priorities. He noted that the General Fund proposed expenditures equal projected revenues. He said the city's fiscal health has continued to dramatically improve as the city no longer faces the financial crisis it did as recently as 1999. He said the emergency reserve fund balance in the General Fund continues to grow and should reach the City Council's goal ahead of schedule. Mr. Garcia said that despite those improvements, this budget has been particularly challenging to compile for significant reasons: the elimination or decline of major revenue sources in the General Fund (specifically, a $1 million contribution from the Hospital District in support of Health Department operations and a substantial drop in electric franchise revenue); and the multi- year implementation of the city's new compensation and classification program. However, Mr. Garcia said he is not recommending a tax rate increase. There is a 5% rate increase programmed for all utilities for the capital improvement program, but no fee adjustments are proposed for solid waste/garbage collection. In addition, with the city's assumption of 911 service responsibilities in the city limits and at the Naval Air Station, a 40 -cent service charge per telephone line is being recommended. He said that charge is less than the 50 cents previously collected and is well below the rate in most other Texas cities. Mr. Garcia said the total proposed annual operating expenditures for all funds amount to $409,207,893 (which includes interdepartmental and interfund transfers). The City Manager announced that the city has once again received the Distinguished Budget Presentation award from the Government Finance Officers Association. He said this year's budget is fashioned after the new format presented a year ago. He said through this budget, city staff has started to aggressively address aging infrastructure needs; construct facilities that will have a major economic impact; and reengineer operations for enhanced responsiveness at lower costs. Mr. Garcia added that in 2002 the city is celebrating its sesquicentennial. *Council Member Garrett arrived at approximately 1:38 p.m. Using a computer presentation, Mr. Garcia outlined specific projects and programs that are included in the proposed FY02-03 budget under the following categories: building and planning for the future; strengthening the workforce; enhancing public safety; reengineering for improved service delivery; funding improved animal care and control services; and replacing worn out equipment. Mr. Mark McDaniel, Director of Management and Budget, discussed anticipated ad valorem revenues and property values for FY02-03 of approximately $8.4 billion. He said at the new values, 1 cent equals approximately $800,000 assuming 3.5% growth in values (last year the growth was 4.9%). He said staff also programmed an additional 1% as a result of the annexations on the island. He added that the city will not receive the appraisal district's certified roll until the last budget meeting in late July, at which time staff will reconcile the actual numbers with the projections. Minutes - Regular Council Meeting May 28, 2002 - Page 4 Mr. McDaniel said the industrial district payments have been volatile over the years and negotiations are under way to make them more predictable. He said staff is programming a 3% growth in that payment for next fiscal year. He said the sales tax revenue is proposed to be $33.7 million (a 3.5% growth projection), up from $32.6 million in FY01-02. The Budget Director also elaborated on Mr. Garcia's previous remarks about the projected loss in CPL franchise revenues, which are budgeted at $8.8 million in FY02-03, as opposed to $10.2 million in FY01-02. With regard to General Fund expenditures, Mr. McDaniel said one aspect is salary adjustments, which include the following: implementation of the new classification plan -$2 million; police and fire salary adjustments -$903,742; merit pay -$59,655; and continuation of "drag -up" pay allocation -$1 million. He also discussed new programs and program enhancements: eighth ambulance -$174,210; Mustang Island Fire Station -$707,097; sworn personnel wage and benefit adjustment -$220,701; enhanced legal services - $155,036; animal euthanasia by lethal injection - $120,000; operation and maintenance for new Animal Care & Control Facility - $30,000; automated garbage collection (Phase 2) - $92,824; biannual legislative program - $50,000; 911 service (excluding dispatchers) - $336,838; PeopleSoft training - $75,000; and Island development plan - $9,000. Mr. McDaniel said the proposed budget also includes expenditure reductions in the amount of $2.5 million and programmed salary savings of $1.6 million. That resulted in only a 1.1% increase in expenditures overall. He noted that the fund balance is 8.8% in FY00-01, up from 2.7% in FY98-99. He said staffs goal is 10% within the next five years. Mayor Neal recessed the Council meeting to read the day's proclamations. Upon reconvening, Mayor Neal asked Mr. McDaniel to continue his presentation on the proposed FY02-03 budget. The Budget Director then discussed the Combined Utility System, noting that staff has programmed 5% rate increases for water, wastewater and gas. The Utility System expenditures are budgeted as follows: salaries and wages -$85,925 increase; debt service increase -$1 million; continuation of computerized maintenance management system -$1,015,000; and contingencies for implementation of skill -based pay. Regarding other funds, Mr. McDaniel said expenditures in the Marina Fund are slightly down and a 3% slip rental rate increase is programmed to generate $22,000. There are no fee adjustments in the Golf Centers Fund and staff is suggesting using the green fee surcharge for capital improvements to existing courses (a driving range at Oso and irrigation repair and replacement at Gabe Lozano). He said in the Airport Fund there are increased security costs and a non-operating revenue increase due to grant reimbursements. In the Ambulance Fund, there is a growing General Fund subsidy of $473,289; the cost of the eighth ambulance unit for $174,210; and firefighter pay adjustments of $70,524. Responding to Council Member Kinnison, Mr. Garcia said at this time the city does not participate in the most lucrative form of revenues for the ambulances --hospital transfers --which he briefly discussed. Mr. McDaniel said the debt service funds consist of the new Seawall Debt Service Fund - $2,178,800; General Obligation Debt -$200,851; Utility System Revenue Bonds -$317,751; and Minutes - Regular Council Meeting May 28, 2002 - Page 5 Airport Debt -$383,847. He also discussed the Hotel Tax Fund and Visitors Facility Fund, which includes the following elements: flat growth in hotel tax revenue after the discount for revenue from the January 1st annexation; expenditure reductions for visitors facilities; funding for beach services; pending convention center expansion bond sale; funding for Columbus Ships debt for the Convention and Visitors Bureau; continued funding for the American Bowling Congress and the city's sesquicentennial celebration; and contributions to other agencies at the same levels. He said the Internal Service funds are budgeted to have an overall decrease of $105,835. Mr. McDaniel then reviewed the FY02-03 budget meetings schedule with the budget adoption ordinance anticipated on July 23rd. Mayor Neal commented that the Council has received information about other Texas cities and states struggling with their budgets; i.e., Austin is anticipating a $72 million deficit and Dallas has a $53 million deficit. He noted that the City of Corpus Christi is holding down expenses and increasing its reserves. He asked the City Manager to formally ask the Nueces County Commissioners Court to provide $1 million in funding from the Hospital District and to implement the child safety fee to help pay for the school crossing guard program, the cost of which is expected to increase by $90,000. The Mayor then made a motion to frame the General Fund budget discussion for FY 2002-03, with revenues and expenses projected to be $146,514,521 and with an unreserved fund balance at the end of the year of $10,556,387. Council Member Scott seconded the motion and it passed unanimously on a voice vote. * * * * * * * * * * * * * Mayor Neal called for consideration of the consent agenda (Items 4-16). Council members and audience members requested that Items 7, 10 and 11 be discussed. City Secretary Chapa polled the Council for their votes and the following passed: 4. M2002-149 Motion authorizing the City Manager or his designee to execute a novation agreement (assignment) with Oklahoma Surety Company and Mid -Continent Casualty Company and King Isles Inc., contractor, to complete construction of the Omaha Drive street improvement project. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 5. M2002-150 Motion authorizing payment of the Special Commissioners' condemnation award of $37,000 for the acquisition of Parcel 1, consisting of a utility and temporary construction easement, both located at the corner of Saratoga Blvd. and Greenwood Drive, to construct wastewater improvements in connection with the Carolyn Heights diversion to Greenwood Wastewater Minutes - Regular Council Meeting May 28, 2002 - Page 6 Treatment Plant -30 -inch line, Project No. 7196, and for other municipal purposes. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 6. M2002-151 Motion authorizing the City Manager or his designee to execute a construction contract with Mitchell's Unlimited of Robstown, Texas, in the amount of $84,950 for the Rincon Channel and U.S. Highway 181 observation decks (wetlands interpretative overlook). The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 8. RESOLUTION NO. 024888 Resolution authorizing the resale of 97 properties shown on the attached and incorporated exhibits which were foreclosed upon for failure to pay taxes for minimum opening bid amounts of 10% of the most recent appraised value for 18 properties which did not sell at last year's auction, and 30% of the most recent appraised value for 79 properties; authorizing the Nueces County Judge to execute a resale deed for each of the properties listed. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 9. RESOLUTION NO.024889 Resolution authorizing the City Manager or his designee to submit a grant application to the U.S. Department of Housing and Urban Development in the amount of $400,000 for a Youth Build grant to provide youth, between the ages of 16-24 years, the opportunity to earn a graduation equivalency degree (GED), receive training in construction, and build homes for low-income families, with $243,000 in cash and in-kind contributions from the Youth Opportunities United, KPE-Development, Gill Roofing, Nueces County Community Action Agency, Nueces County Public Health District, Workforce Network, Corpus Christi Independent School District, and Regional Transportation Authority, and a $15,000 in-kind match from the City of Corpus Christi Weed and Seed Program, and a total project cost of $658,000. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 12. RESOLUTION NO. 024890 Resolution authorizing the City Manager or his designee to submit a grant application to the Texas Department of Public Safety Division of Emergency Management in the amount of Minutes - Regular Council Meeting May 28, 2002 - Page 7 $70,000 under the FY2002 Pre -Disaster Mitigation Program to develop a pre -disaster mitigation action plan with a city in-kind match of $24,000 and total project costs of $94,000. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 13.a. M2002-156 Motion authorizing the City Manager or his designee to accept a renewal grant in the amount of $1,227 and execute a contract with the Corporation for National and Community Service for the continuation of the Senior Companion Program. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 13.b. ORDINANCE NO. 024891 Ordinance appropriating a grant in the amount of $1,227 from the Corporation for National Service in the No. 1050 State and Federal Grants Fund for the continuation of the Senior Companion Program. An emergency was declared and the foregoing ordinance passed as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 14.a. FIRST READING ORDINANCE Ordinance authorizing the City Manager or his designee to execute Amendment No.1 to the joint use parking agreement between All Saints' Episcopal Church and the City of Corpus Christi, authorized by Ordinance No. 021588 on March 9, 1993, to revise the parking premises. The foregoing ordinance passed on first reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 14.b. FIRST READING ORDINANCE Ordinance authorizing the City Manager or his designee to execute Amendment No. 1 to the lease for Jaycee Field between the Corpus Christi Independent School District and the City of Corpus Christi, authorized by Ordinance No. 022811 on January 7, 1997, to revise duties related to maintenance of the parking lot. The foregoing ordinance passed on first reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Minutes - Regular Council Meeting May 28, 2002 - Page 8 15. ORDINANCE NO. 024892 Ordinance authorizing the City Manager or his designee to execute a five-year lease with Corpus Christi United Little Miss Kickball, a non-profit organization and an affiliated member of Little Miss Kickball International Inc., a non-profit corporation, for the use of a portion of Bill Witt Park for its kickball program and in consideration of Corpus Christi United Little Miss Kickball maintaining the premises and improvements. The foregoing ordinance passed on second reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 16. ORDINANCE NO. 024893 Ordinance amending Section 12-45.1, Code of Ordinances, relating to occupancy of vessels in the marina. The foregoing ordinance passed on second reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 7, Garcia Arts Education Center area street improvements. Responding to Council Member Kelly, Assistant City Manager Margie Rose stated that Phase 1 is for design and construction and Phase 2 is for design and right-of-way. She said the engineers indicated that there are not enough funds for Phase 2 and staff is suggesting that construction monies be requested during the FY 2004 CDBG program. City Secretary Chapa polled the Council for their votes as follows: 7. M2002-152 Motion authorizing the City Manager or his designee to use a portion of the design and construction funds from the Garcia Arts Education Center area street improvements, Phase 1 project (design & construction), approved under the FY2000 Consolidated Annual Action Plan (CAAP), toward right-of-way acquisition and relocation in the Garcia Arts Education Center area street improvements, Phase 2 project (design & property acquisition), also approved in the FY2000 CAAP. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal opened discussion on Item 10, Community Youth Development (CYD) programs. In reply to Council Member Noyola, Mr. Tony Cisneros, Director of Park and Recreation, said the city received six applications for funds but two of them were deemed unresponsive and four Minutes - Regular Council Meeting May 28, 2002 - Page 9 were considered for funding. He added that this is a very intensive request for proposal process involving the 78415 Steering Committee, whose members are trained by the state in order to recommend the grant awards. City Secretary Chapa polled the Council for their votes as follows: 10. M2002-153 Motion approving the submission of FY 2002-2003 Community Youth Development programs in the amount of $500,000 to the Texas Department of Protective and Regulatory Services as recommended by the 78415 Community Youth Development Steering Committee. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." ************* Mayor Neal opened discussion on Items 11.a. -c. regarding the harbor ferry operation. Mr. Buddy Clark said he is the owner and operator of Capt. Clark's Flagship and Gulf Clipper, which has provided boating entertainment to Corpus Christi for over 50 years. He said the reason the items are on the day's agenda is because he notified city staff that marina construction was illegally taking place last week because the Council had not approved it as called for in Section 12-2 of the City Code of Ordinances. He asked the Council to table the items until more information can be obtained. He said the Regional Transportation Authority (RTA) has opened a harbor ferry "depot" on the People's Street T -Head and during its first weekend of operation (Memorial Day weekend), shrimpers there lost money because of the large crowds. Mr. Clark questioned why the RTA is financially responsible for the harbor ferry stops at the barge dock and the Texas State Aquarium (TSA) but not at the People's Street T -Head. Mr. J.E. O'Brien, 4130 Pompano, said there had to be a reason for passage of the ordinance that gave the Council authority to approve construction in the marina and he asked what has changed to now make it invalid. He said the Council is intent on delegating more authority to city staff. He said it does not make sense to propose giving the marina superintendent the authority to approve construction in the marina when he has already demonstrated his abuse of city ordinances by allowing construction to begin. Mayor Neal said the Council received a letter from Ms. Shelby O'Brien (no relation to Mr. O'Brien above) dated May 25, 2002, stating her opposition to Items 11.a. -c. She said the RTA is using sales tax dollars and grant money to directly compete with free enterprise through its operation of the harbor ferry. She provided signatures of over 159 people in support of Capt. Clark and she asked that the Council table the items. The Mayor said the Council also received a request from Mr. Bill Kopecky asking that the Council not change the ordinance (Item 11.c.). Council Member Kinnison asked Ms. Linda Watson, RTA General Manager, to describe the harbor ferry's history. Ms. Watson said that nine years ago the city asked the RTA to operate the Minutes - Regular Council Meeting May 28, 2002 - Page 10 ferry service from the barge dock to the TSA. She said the RTA commissioned a study to determine how to improve the harbor ferry service and one of the recommendations was to add a stop at the People's Street T -Head. She said the previous fare was $1 one way; this year the RTA will charge a $3 fare which is good all day on the harbor ferry. She said the ferry, which is similar to a shuttle service, operates from 10:30 a.m. to 6:30 p.m. from Memorial Day weekend to Labor Day weekend. Ms. Watson added that the majority of the passengers are riding the harbor ferry service for transportation and they are disembarking at their destination. In response to other questions from Mr. Kinnison, Ms. Watson said the RTA operates the harbor ferry as a turn -key service and they received one bid from Barney's Place Inc., which has provided the service in the past. She added that several tourist -related entities support the harbor ferry in a variety of ways. For example, the Downtown Management District paid for the harbor ferry rides during the Memorial Day weekend so the public could ride for free. She said through the use of coupons, the attendance at the tourist attractions can be tracked. First Assistant City Attorney Jay Reining explained that staff found very few occasions where the City Council granted permission under Section 12-2 of the Code of Ordinances. He said that basically new pilings and stakes are installed throughout Corpus Christi Bay almost all the time and staff decided to treat it as an administrative process at the marina by recommending that either the Marina Superintendent, Petroleum Superintendent or City Manager be allowed to grant that permission. He added that since most of the bay bottom belongs to the state of Texas, a permit is required from the General Land Office as well as from the Coast Guard and the U.S. Army Corps of Engineers. City Manager Garcia added that the current requirements are somewhat of an anomaly and staff wanted to treat those requests as building projects, which have permit and code regulations. Ms. Watson said the RTA has been talking with different organizations about sponsoring one other free ride day later in the season. Mr. Kinnison pointed out that someone has to pay that cost. Ms. Watson added that the RTA anticipated 1,500 passengers during Memorial Day weekend while there were actually almost 12,000 passengers. Responding to Council Member Chesney, Ms. Watson said the RTA has a contract with Mr. Danny Duzich, the owner of Barney's Place Inc. She said the RTA is responsible for the pilings at the TSA and the barge dock. She said since Mr. Duzich is using the People's Street T -Head dock 12 months out of the year for his boat, the RTA is paying him about $160,000 to operate the harbor ferry service and the RTA keeps the revenues. She added that all of the RTA's park-and-ride and paratransit ("B -Line") services are contracted out to a third -party provider. Mr. Chesney said the complaint is that the RTA is competing with private business. Ms. Watson said the harbor ferry is a transportation service and anyone could have responded to the request for proposals. She said they do not consider the harbor ferry to be a tour boat service nor do they think it competes against the private sector anymore than the RTA's buses compete against automobiles. Mr. Garcia said the issue is whether or not there should be a harbor ferry. He added that every other coastal city he can think of has subsidized ferries. Mr. Chesney said he does not think they should put a private company out of business by subsidizing something that competes with it, although he thinks the harbor ferry is a good concept. Minutes - Regular Council Meeting May 28, 2002 - Page 11 Ms. Watson said the RTA board members wrestle with this issue each year because they are not certain they want to be in the ferry boat business as well. Mr. Chesney said if the harbor ferry was truly just a transportation vehicle, the passengers should be asked to disembark. Ms. Watson said she is very willing to work proactively with Capt. Clark and any other interested parties to try to assist them. She noted that in the past the RTA has provided Capt. Clark's brochures to passengers of the RTA water ferry. She added that if the water ferry captain notices someone who has ridden the boat and has not disembarked, he or she is asked to do so. Mr. Chesney asked why construction was initiated in the marina without coming to the Council first. Mr. Garcia replied that that ordinance has been on the city's books for several years and many people have constructed projects in the marina without first seeking the Council's permission. He said staff is trying to correct the oversight. Mr. Clark said that over 50% of the water taxi passengers ride it for sightseeing purposes. He added that his business is off by the same amount. He said he is not trying to shut down the water taxi but rather use it in the way it is designed and make the passengers disembark. He said his tour boat service takes about one hour and covers a larger area. Responding to other questions from Mr. Chesney, Mr. Garcia pointed out that the Council does not have any authority over the RTA's operations. He said they could deny permission for construction of the pilings, which would shut down the harbor ferry. Mr. Clark said if the pilings are installed as requested, the ferry will be able to operate as planned. He said he wanted the agenda items to be tabled until these issues are resolved. Council Member Longoria said he does not object to Items 11.a. and 11.b. and he asked staff to further develop Item 11.c. because he thinks the Council should grant permission for construction of public piers. Mr. Reining said there is a lot of marine construction in Corpus Christi Bay, which covers a large area. He said publicly funded projects are normally approved by the Council anyway; however, boat operators need many replacement pilings. Mr. Longoria said he is concerned about development at the T -Heads and L -Head. Council Member Scott said he is glad that the RTA is spending money to help tourism in Corpus Christi. Regarding Item 11.c., he said he agrees that maintenance and repair projects should not come to the Council but improvements to facilities adjacent to or associated with the marina should. Mr. Reining further discussed that issue. In reply to Council Member Kelly, Mr. Reining said there is no record other than in the 1940s that the Council has given consent under Section 12-2. Mr. Kelly said the only reason these items are before the Council today is because Mr. Clark complained about the pilings being constructed in apparent violation of the city ordinance. However, he said the agenda items have nothing to do with how the RTA is operating the ferry. Replying to Mr. Kelly, Ms. Watson said the ferry is the shortest way to reach the aquarium from the bayfront. She said the RTA has a trolley that operates across the Harbor Bridge but it takes considerably longer. She said Mr. Clark was not interested in bidding on this service and if the RTA Minutes - Regular Council Meeting May 28, 2002 - Page 12 did not offer it, it would not be provided. Mr. Kelly said Mr. Clark indicated that he provides a different service. Council Member Colmenero said there have been many opportunities to reply to the RTA's request for proposals for the water taxi service. He said he believes that both Capt. Clark's boat and the water taxi (and any others) can operate simultaneously. He said the public and private sector need to start working together. Council Member Noyola said he heard complaints about parking problems during the Memorial Day weekend and many people lost money as a result of the crowds. Ms. Watson said the RTA is willing to encourage people to park off-site and take the trolley to the harbor ferry. City Secretary Chapa polled the Council for their votes as follows: 11.a. M2002-154 Motion granting permission to Barney's Place Inc. for pilings installation at the Corpus Christi Marina. The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent. 11.b. M2002-155 Motion granting permission to the Regional Transportation Authority (RTA) for pilings installation at the City Barge Dock and at the Texas State Aquarium. The foregoing motion passed by the following vote: Neal, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Chesney absent. Mr. Longoria made a motion to withdraw Item 11.c. for 30 days in order to clarify the specific authorization the Marina Superintendent will have. The motion died for lack of a second. Mayor Neal suggested that the Council pass Item 11.c. on first reading, which will give staff time to explore some of the issues that were raised about that section of the code. Mr. Chapa then polled the Council for their votes as follows: 11.c. FIRST READING ORDINANCE Ordinance amending Section 12-2 of the Code of Ordinances, City of Corpus Christi, regarding placing obstructions in Corpus Christi Bay; providing for penalties. The foregoing ordinance passed on first reading as follows: Neal, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria voting "No"; Chesney absent. * * * * * * * * * * * * * Mayor Neal referred to the presentations on the day's agenda, the first of which (Item 17) was the quarterly update by the Corpus Christi Regional Economic Development Corporation (EDC). Minutes - Regular Council Meeting May 28, 2002 - Page 13 Mr. Joe Adame, EDC Chairman, introduced the other board members present, Mr. Jim Barnett and Mr. Foster Edwards. Mr. Adame said the goal of the EDC is to create jobs in the community and to do so they receive about $400,000 from the private sector and $600,000 from the public sector. Mr. Ron Kitchens, EDC President and CEO, said that year-to-date there have been 1,692 new jobs with 200 more jobs announced since the quarterly report was printed. He said about two-thirds of those jobs are with existing businesses, and the EDC works with them to remove impediments and find new opportunities for growth. Mr. Kitchens discussed several job studies, including one of businesses in Nueces, San Patricio, Kleberg and Aransas counties regarding available labor pools. He said the EDC is also working with military facilities in various aspects. Mr. Kitchens said they are focusing on the issues of underemployment and unemployment. The aviation, fabrication, and medical sectors are experiencing labor shortages, in particular the nursing field. In addition, the EDC has a campaign to encourage former Corpus Christi residents to return to the job market here. Council Member Scott stated that in the June 24th issue of Forbes magazine, there was an article about the best places to do business and Corpus Christi was listed as the 9th fastest city to move up in that category. Mr. Scott commended City Manager Garcia and senior staff for creating a proactive environment for businesses. Mr. Kitchens said that Mr. Jeff Moseley, Director of the Texas Department of Economic Development, asked EDC staff to give the state agency information about how Corpus Christi's EDC is operated. Mayor Neal said another aspect of economic development is good schools and he complimented CCISD staff and students for continuing improvement in TAAS scores. Council Member Chesney said there has to be a team approach to the effort to bring good jobs to Corpus Christi, which the Council has made their goal. He encouraged EDC staff to continue their efforts. The Mayor deviated from the discussion to recognize Mr. Kirk Watson, former mayor of Austin, who said he was visiting Corpus Christi during his campaign for Texas Attorney General. Returning to the EDC discussion, Council Member Garrett asked about figures the EDC uses regarding existing industries. Mr. Kitchens said the EDC has a program in which they have identified 223 primary companies and the EDC staff calls on those companies at least four times a year. He said the vast majority of them inform the EDC about their expansion plans. Council Member Kelly discussed the importance of professional sports teams in the community. Mr. Kitchens said Corpus Christi is the largest city in Texas without a minor league baseball team and they are working on that issue. * * * * * * * * * * * * * The second presentation (Item 18) was made by Mr. David Casteel, District Engineer for the Texas Department of Transportation (TXDOT), about the SH 358 bottleneck study. He introduced Mr. Ismael Soto, TXDOT Traffic Engineer, and Mr. Russell Henk, Texas Transportation Institute. Minutes - Regular Council Meeting May 28, 2002 - Page 14 Mr. Casteel said the purpose of the study is to evaluate the SH 358 corridor (South Padre Island Drive) from Greenwood Drive to the Cayo del Oso Causeway and on SH 286 (Crosstown Expressway) from Gollihar Road to Holly Road. He said the study will allow TXDOT staff to identify "hot spots" and develop and evaluate operational and geometric improvements. To do so, they will utilize the CORSIM micro -simulation model. Mr. Casteel described charts illustrating the following: SPID corridor main lane morning and evening peak traffic times; total yearly crashes on SPID from Crosstown to Paul Jones Avenue; preliminary delay and cost of congestion data (on the SPID corridor and related arterials); and estimates of cost due to traffic congestion on SPID. He said the study's preliminary findings are that the Crosstown extension provides some relief; crossing arterials back up ramps and impact freeways; the current ramp configuration compounds the impact of arterial dynamics; and in 10 years (even with the Crosstown Interchange in place) more delays are expected than currently exist. The TXDOT Engineer said that ideas to explore include adding capacity to the freeway; changing the location, design or configuration of the ramps; improving the crossing arterials; improving the driveway (access control) on frontage roads and arterials; and adding auxiliary lanes on the freeway (improving the weave). Responding to Council members' questions, Mr. Henk said that several actions --rather than just one --need to be taken to relieve the traffic congestion on SPID. Mr. Casteel said that with regard to TXDOT, "short-term" means three to five years and "long-term" means 10 to 20 years, and ramp improvements would be in the long-term category. He said the next steps are to continue the collaborative efforts between the city and TXDOT; develop and refine alternative improvements; identify opportunities for both short- and long-term improvements; and develop conceptual designs and estimated costs for preferred alternatives. He added that TXDOT's efforts do not duplicate those of the MPO. * * * * * * * * * * * * * The third presentation (Item 19) was regarding the Air Quality Committee's research and planning for the Corpus Christi urban airshed. Mr. Bill Hennings, Chairman, said the committee is working hard to maintain the good air quality here and their annual kick-off event will be held on Saturday, June 8th. Mr. Hennings explained that the national standards for ambient air quality are carbon monoxide, nitrogen dioxide, ozone, lead, particulate matter and sulfur dioxide. He said the committee has been working on the ozone issue since 1995 and there are two monitors (at the Corpus Christi State School and West Guth Park) operated by the TNRCC that continuously monitor ozone levels. He said the standard for ozone is 125 parts per billion and during the early 1990s the community's ozone levels exceeded the national standard. However, progress has been made since the mid-1990s to reduce ozone levels. Mr. Hennings discussed the importance of controlling and reducing air pollution to offset the effects of growth. He noted that on high ozone days, Corpus Christi's levels are affected by ozone Minutes - Regular Council Meeting May 28, 2002 - Page 15 in the Houston, Beaumont and Port Arthur areas. He said the two largest sources of air pollution are industrial/business sources and internal combustion engines (contained in cars, trucks, lawn mowers, power boats, and construction equipment). Mr. Hennings said that in 1996 the City Council approved an agreement with the regulatory agencies called a flexible attainment action plan, which was one of three in the nation. He said that for over a year the Air Quality Committee has been working on developing an agreement under the Environmental Protection Agency's new policy and guidelines known as an O3Flex memorandum of agreement. He said it sets out the plan for the next five years so the community's air quality will meet the standards under the Clean Air Act. He said the proposed agreement continues the 1996 provisions because they are effective. He also discussed a proposal that is being developed for the eight-hour standard and he described the standards for fine particulate matter. Mayor Neal expressed the Council's appreciation for Mr. Hennings' dedication to air quality issues. Responding to Council Member Kelly, Mr. Hennings said the city surpasses the ozone standards if the one-hour average exceeds 125 parts per billion on just four days. Mr. Kelly said he wanted citizens to appreciate the enormity of the task the Air Quality Committee is undertaking. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 20, air quality program. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 20. RESOLUTION NO. 024894 Resolution authorizing the City Manager or his designee to execute a memorandum of agreement with the U.S. Environmental Protection Agency and the Texas Natural Resource Conservation Commission (TNRCC) providing for the implementation of locally defined emission control programs should the one-hour federal ozone standard be violated in lieu of immediate redesignation to non -attainment. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Mayor Neal called for a brief recess. Upon reconvening, he opened discussion on Item 21, arena naming rights agreement. City Secretary Chapa stated that Council Member Kelly had filed a disclosure affidavit and he will be abstaining from discussing or voting on this matter. Deputy City Manager Noe explained that the naming rights were excluded from the agreement with SMG because that is a relatively specialized area. As a result, the city prepared a separate request for proposals (RFP) for the naming rights and received proposals from two national firms. After interviewing both, staff is recommending the firm SFMG, which is not associated with SMG. Minutes - Regular Council Meeting May 28, 2002 - Page 16 Mr. Noe said the proposed agreement includes the following provisions: payment of $5,000 a month for nine months; reimbursement of expenses up to a maximum spelled out in the contract; and payment of a commission on a sliding scale should SFMG secure the naming rights themselves. He gave the example that the City of Laredo is expecting to receive $3 million over 10 years for the naming rights for their facility. Responding to Council Member Kinnison, Mr. Noe said SFMG has contacts with national firms they have previously marketed to for other facilities. Mr. Kinnison asked if staff had pursued local firms. Mr. Noe replied that they considered that but wanted to ensure that they do not sell the city short on the real value of the arena's naming right. He added that the arena suites will be one of the last issues to be decided. Mayor Neal asked about the time limit and Mr. Noe said it is a nine-month contract. There were no comments from the audience. Mr. Chapa polled the Council for their votes as follows: 21. M2002-157 Motion authorizing the City Manager or his designee to execute a contract for professional services with WRCHowell Inc. of Cleveland, Ohio, (d.b.a. SFMG) for a fee of $45,000 plus expenses and a commission not to exceed seven percent (7.0%) of the gross revenue generated from any naming rights agreement entered into by the City of Corpus Christi. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Kelly abstaining. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 22, Packery Channel financing team. City Secretary Chapa said that Council Members Garrett and Kelly had filed disclosure affidavits and will be abstaining on this matter. Assistant City Manager Jorge Cruz-Aedo explained that the tax increment financing (TIF) zone was created by the city to market the bonds, which are estimated to be $10 million. He said all of the recommended firms, which have previously worked for the city, have experience in specialty financing. He said this will involve a private -placement bond issue with three different traunches. Mr. Al Allison, of M.E. Allison & Company, noted that his father prepared the financing and sold the bonds for the JFK Causeway construction several years ago. He said despite pessimism about that project, the bonds were paid off 10 years ahead of schedule. Mr. Allison said he is staking both his personal reputation and that of his firm on the belief that the Packery Channel project will be constructed. Mayor Neal spoke in support of the proposed financing team. There was no other public comment. Mr. Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting May 28, 2002 - Page 17 22. M2002-158 Motion approving the selection of financial advisor, Coastal Securities; co -underwriters, M.E. Allison and Company and Dain Rauscher; and bond counsel, McCall, Parkhurst for Packery Channel. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Garrett and Kelly abstaining. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 23, South Guth Park master plan project. Mr. Cisneros explained that that park serves two purposes: as the neighborhood park for that area as well as a popular, frequently used athletic complex. As a result, representatives of several groups, including the Pharaoh Valley Neighborhood Association (PVNA), were involved in the planning process. He said the master plan lays the groundwork for any future improvements. The Mayor called for public comment. Ms. Miriam Wagenschein, 6810 Sahara Dr., said she is chairperson of the PVNA's Park Committee. She said the members support the master plan because it will be a very different kind of park that serves a number of needs and age groups. She said this park should be beautiful because it is the gateway to Padre Island and is an extension of Ocean Drive via Ennis Joslin. In order to allow for maximum use by all parties, they recommend the idea of shared parking. She said the PVNA members will be helping to raise money for the park's construction and they will probably ask for financial support in a future bond issue. Ms. Pat Suter, 1002 Chamberlain, said she is very interested in the PVNA's efforts and the proposed master plan because the Hans Suter Wildlife Area is located across the street from South Guth Park. She said she will provide her assistance to this project. Responding to Council Member Scott, Mr. Cisneros said that representatives of the athletic leagues worked with staff on the master plan. Mr. Scott said he is glad that the leagues and the neighborhood association reached compromises on several issues. Mr. Cisneros described plans for irrigation and future parking and he discussed the existing athletic fields. City Secretary Chapa polled the Council for their votes as follows: 23. M2002-159 Motion authorizing the proposed South Guth Park master plan project. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." * * * * * * * * * * * * * Minutes - Regular Council Meeting May 28, 2002 - Page 18 Mayor Neal called for petitions from the audience. Mr. Leon Perez said that desalination is very important and is not a new concept. He also criticized the water being piped from Lake Texana. Mr. Lonnie Laningham said he is opposed to the possibility of a baseball stadium being built in the downtown area because of traffic congestion from the arena and other facilities. He said it should be built in the westside corridor between Greenwood Drive and the airport. Ms. Kay Noyes said she would like to have space for the city to advertise on a bus. She said she is raising money for a non-profit organization. Mayor Neal suggested that Ms. Noyes discuss her idea with city staff. * *** Mayor Neal opened discussion on Item 24, consideration of lease negotiations between the City of Corpus Christi and Mr. Leon Loeb, owner of Landlord Resources Inc. (LLR), on the South Wharf project. The Mayor said the purpose is to try to proceed one way or the other with this project. In a computer presentation, Deputy City Manager Noe said the six significant issues that need to be resolved are term, lease rate, utility extensions, parking, traffic, and planning. He said Mr. Loeb is requesting a 60 -year lease and city staff is recommending a 40 -year lease. With regard to the lease rate, LLR is requesting the following: years 1-7, $12,000 per year; years 8-11, $30,000 per year; years 12-15, $60,000 minimum or 2% of rents (net any pass-throughs); and years 16 and up, $90,000 minimum increasing by the consumer price index. He said staff's position is to amend the ramp up with 2% net of taxes and insurance only. Mr. Noe said LLR is also asking that the city bear the cost of extending utilities to the site and waive all fees for hook-ups. Staffs position is that LLR should pay the cost of utilities extension and connection like all other developers. Mr. Loeb requested that the city provide 480 spaces out of the Memorial Coliseum parking lot to count toward the parking requirements in the City Code for his development. Also, LLR wants the city to use its best efforts to relocate the Buccaneer Days carnival and, if that parking lot is used for any other reason, the city would be obligated to replace the 480 spaces somewhere within 800 feet of the South Wharf. He said the city's position is the same with the exception of the request to replace the 480 spaces in the event of redevelopment of that lot. Mr. Noe explained that LLR is requesting that the city provide traffic control, including signals, while the city's position is that all traffic controls must meet specific warrants and the signal should be paid for by the developer. Regarding planning issues, Mr. Loeb is asking that the city support several planning and zoning variances, such as uses, signage, set backs and others. Staff's position is that Mr. Loeb should use the normal process to secure any variances. The Deputy City Manager said that three other issues are subleases, governmental authority, and commitment/schedule of investment. He said the financial impact of Mr. Loeb's requests are estimated to be utility extension -$968,190; utility connection -$22,000; traffic signal -$75,000 to Minutes - Regular Council Meeting May 28, 2002 - Page 19 $100,000; and parking replacement -$3.4 million to $5.7 million. He said the policy issues are whether the city should provide economic incentives to support or facilitate the South Wharf development and whether it should be subject to the same planning and development rules as other projects. He said staff believes that the current agreement provides little guarantees on development and that the city's position is fair and does not provide economic incentives to the project. Mr. Loeb then gave his own computer presentation in which he showed photographs of a former commercial wharf which was footed at the corner of Cooper and Water streets. He said the photos show that most of the buildings currently located in the downtown area west of Water Street had already been built 15 years after the 1919 hurricane and prior to the construction of the seawall. He said there was a thriving commercial waterfront and a community that fronted on the bay. He said that today the downtown area's relationship to the water has been severed by the uphill slope from Water Street to Shoreline and several high-rise buildings that have been built near the water. Mr. Loeb said that while the seawall is being rebuilt, the city has the opportunity to bring the bayfront back into focus as the center of community life. He said the choices are to do nothing; make the seawall a more comfortable place with green spaces and other amenities; promote "packaged" developments such as the proposed Landry's development; or create a unique waterfront environment. He said in order for the South Wharf project to proceed, there has to be broad community support and the development has to meet environmental regulations and be appealing enough to attract private capital. Mr. Loeb then described his proposed location for South Wharf in the marina's south basin, which currently is known for the way litter collects there. However, he said it has great potential because it is at the center of many mixed uses and has adjacent public parking. He also discussed how each step of the development process involves a price tag and is a risk with no payoff until the project reaches fruition. Mr. Loeb explained how the South Wharf concept reached this point as well as the political and physical elements of the project, which preliminarily consists of 40,000 square feet of retail and restaurant space (primarily locally owned and operated businesses); water equipment and beach service rentals serving the basin and McGee Beach; a youth sailing center; office space; some residential spaces; marina; and a bed and breakfast serving mainly transient boaters. He said the point is to establish an urban waterfront that is consistently utilized throughout the year. He also discussed challenges that face the project. With regard to costs, Mr. Loeb said they believe the land improvements will be about $5 million; $20 million for the building; and annual tax payments of about $600,000 (a third of which goes to the city). He said they estimate that the project will result in a $40 million total benefit package to the city over the 60 -year lease term, at the end of which the city will own the project. He also discussed their optimal time line for the development with the possibility of being operational by the summer of 2005. Responding to Mayor Neal, Mr. Noe said staff believes that 60 years is an unusually long lease term and that it is possible to amortize the developer's investment over 40 years instead. Mr. Minutes - Regular Council Meeting May 28, 2002 - Page 20 Jim Plummer, an attorney with Fulbright & Jaworski, said another issue is the time period in which the city is assured of receiving a fair market value return. Mr. Harry Marks, an attorney representing Mr. Loeb, pointed out that the lease contains a percentage rent increase and a CPI increase. In addition, he said Mr. Loeb --not the city --is the developer of the project. In reply to another question from the Mayor, Mr. Noe said that staff is open to further discussion but without additional information (such as a detailed proforma), staff cannot recommend beyond just excluding taxes and insurance. Mr. Loeb said LLR is not asking that any of their overhead be excluded from the amount used to compute the percentage rent. Mr. Noe said the language that has been proposed is "expenses incurred by the tenant" with the tenant being Mr. Loeb. Mr. Noe said those expenses can be anything. Mr. Loeb said that is one of the relatively smaller issues, adding that the basic aspects of the whole discussion are the city's policy issues and large economic issues. Council Member Scott referred to Mr. Loeb's proposed 60 -year lease term. Mr. Noe said the city can include provisions that ensure a quality project for all 60 years; however, the current lease does not contain minimum maintenance requirements. Mr. Plummer said the difference between a 40 -year and 60 -year lease is that in the latter, the last 20 years become highly profitable. Council Member Kinnison noted that other leases the city has are much shorter, such as with Landry's Inc. for Joe's Crab Shack on the Lawrence Street T -Head and with Ms. Jane Stubbs for the bait stand on the Cooper's Alley L -Head. He said the voters will express the most concern about a 60 -year lease. Council Member Kelly said there is nothing in the lease that requires the development to match the designs Mr. Loeb has presented. Mr. Noe said the development would have to meet certain zoning and building codes. He added that any assignment of the lease would require the Council's approval but there is nothing that states that Mr. Loeb has to be the person to build the development. Mr. Plummer said the longer term increases the project's marketability. Responding to Council Member Chesney, Mr. Noe said Mr. Loeb's proposal has a lease term with two renewal options for a total of 60 years. Mr. Chesney said the developer would be making a substantial investment to build something that the city does not have. Mr. Noe reiterated that 60 years is a long lease term. Mr. Kinnison said it would be different if there was language in the lease obligating Mr. Loeb to a certain level of development, such as $20 million. Mr. Loeb replied that the problem would be what would happen if those requirements are not met. Council Member Colmenero said the potential marketability of this project to the voters is on the line as they listen to this discussion. He said this process makes it difficult to reach an agreement on the terms. Council Member Noyola said the parties are not even close to an agreement and he wants something that can be supported by the voters. Mr. Kelly said he thinks this process is counterproductive. Mr. Chesney suggested that the city hire a professional mediator. Additional discussion ensued about the negotiation process and the critical issues involved. Mayor Neal announced that the Council was going into executive session pursuant to Texas Minutes - Regular Council Meeting May 28, 2002 - Page 21 Government Code Sections 551.071, 551.072 and 551.087 regarding the South Wharf project in the Corpus Christi Marina, with possible discussion and action related thereto in open session. The Council went into executive session. The Council returned from executive session. The Mayor asked city staff and Mr. Loeb and his attorney to take time during the Council meeting to further discuss the South Wharf proposal. * * * * * * * * * * * * * Mayor Neal called for the City Manager's report. Mr. Garcia said that the mother of Mr. Jesus Garza, former city manager of Austin and former deputy city manager of Corpus Christi, passed away. Her funeral will be held on May 29, 2002. Mr. Garcia said the June 1 lth, June 18th and June 25th Council meetings will begin at 1 p.m. with detailed discussions about the proposed budget and several other issues. Mayor Neal requested information about whether or not the city has an ordinance prohibiting the sale of animals on public street corners and retail parking lots. Mr. Cruz-Aedo said that is one of the issues that will be addressed during a future animal control discussion. The Mayor also reported a large pile of yard waste on private property on South Staples Street between Williams Drive and Holly Road and unclean conditions on McGee Beach and the seawall area. In response to a recent letter to the editor, the Mayor said the Council intends to pay all city employees fairly and justly. Mayor Neal then called for Council concerns and reports. Mr. Chesney said there was an article in the Dallas Morning News about the seaweed problem on Corpus Christi's beaches, which is counterproductive to tourism efforts. He also commented on the graffiti clean-up program and on paying city employees fair wages. Mr. Garrett asked staff to review the regulations regarding car -towing fees. Mr. Longoria requested information regarding proposed employee benefit adjustments and he asked staff to respond to concerns about dogs and other animals being permitted in Kids Place at Cole Park. Mr. Noyola asked for more information about a specific letter from a city employee and he asked for a report from Mr. Escobar about Mr. Rodriguez's concerns. Mayor Neal called for a brief recess of the Council meeting since city staff and Mr. Loeb were still discussing the South Wharf project. The Mayor reconvened the meeting. Mr. Noe reported that staff went over all the items that were discussed previously and responded to a number of questions. He said there are several things staff needs to consider regarding the structure of the ordinance itself. Mr. Loeb stated that the Council did a lot of hard work during the executive session and came up with some very interesting proposals, which he and his associates will consider over the next few days and then report back to the Council. Mayor Neal said the Council sincerely tried to proceed with the South Wharf issue. There being no further business to come before the Council, the Mayor adjourned the Council meeting at 9:28 p.m. on May 28, 2002.